Alinga Consulting Group

Russia's Ministry of Finance has clarified the meaning of the term “business” in accordance with IFRS standards. It also has introduced a test for the presence of fair value concentration, which will determine if a set of activities and assets constitutes a business by analyzing whether the set is fundamentally significant based on whether there is a return generated.

If goods imported to Russia from Eurasian Economic Union counties are accounted for after January 01, 2019, VAT must be charged at the new rate of 20%. This is according to Russian Ministry of Finance Letter No. 03-05-05-01 / 95999 of February 28, 2019.

Amendments have been introduced to define the consequences for “fictitious registration of a foreigner,” which was previously defined in a previous set of amendments. This concerns both temporary and permanent registration for foreigners and stateless persons at their place of residence in both residential and non-residential premises.

The new changes establish fundamental principles that underlie the preparation and presentation of accounting and financial reports for external users. Specifically, this includes a number of amendments to such standards as IFRS 2 Share Based Payments, IFRS 6 Exploration and Evaluation of Mineral Resources, IAS 1 Presentation of Financial Statements, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and many others.

When a company hires a foreign worker, it must notify the Ministry of Internal Affairs and the FSB when certain events occur. And you need to notify about any foreigner, even those with permeant residence permits. Here are five such situations.

July 29, 2018 and October 11, 2018 Amendments were made to the Law “On Migration Registration of Foreign Citizens and Stateless Persons in the Russian Federation” (hereinafter referred to as the Law), on November 12, 2018, amendments were made to Article 322.3 of the Criminal Code of the Russian Federation.

Situation: A Russian organization provides equipment for rent to a non-resident, in particular a Kazakh company that has no representation in the territory of the Russian Federation. In addition to this type of service, the Russian company also sells goods (works, services) within the territory of the Russian Federation (VAT rate 18% and 10%), and also exports complex goods (equipment) (VAT rate 0%)).

The Government of the Russian Federation has approved the list of groups of goods for which in 2019 mandatory labeling will be introduced (Ordinance No. 792-p, dated April 28, 1998). The same document establishes a timeline for its implementation. Thus, for tobacco products, the labeling will be introduced on March 1, 2019, and for shoe products, on July 1, 2019.